Big tech companies are making big moves to get into the broadband space – and Communications Service Providers (CSPs) have a right to be worried
Elon Musk’s SpaceX launched more than 1,000 satellites into orbit to test its internet service across the globe. And Amazon announced its plans to launch more than 3,200 satellites for its own service, Kuiper Systems.
But even with these corporations encroaching on their space, CSPs shouldn’t be ready to resign their market share just yet. With the right tools and strategies, they can better position themselves for longevity and secure a future-proofed spot as the comprehensive, go-to provider for their target customers. Additionally, President Biden recently signed a new executive order to increase regulation for big tech companies, which could open up competition in the space. So, here’s what CSPs need to know about the battle with big tech—and how to survive it.
CSPs still have the upper hand
Despite big tech’s big plans, CSPs still have a major advantage: They got here first. When people made that initial decision to bring connected devices and experiences into their homes, who did they turn to for help? CSPs. As a result, they’ve been using internet routers, cable boxes, and phone systems longer than they’ve been streaming Amazon shows and driving Teslas.
That means CSPs have an important opportunity to build on those relationships and offer even more value to their customers. And that’s why we think CSPs are actually in a great position—not only to keep their market share but also to gain more share in the digital space, which is currently going to big tech through their video and streaming platforms. They just need to know how to do it.
What CSPs can do to reclaim—and expand—their market
CSPs can use these key strategies to get ahead of big tech and maintain their positions as leaders in the broadband space.
Build a new bundle with additional services
CSPs already provide a broadband connection, but that’s no longer enough when they’re competing with big tech. They now need to offer additional services, such as:
As more people are working and learning from home, they need WiFi that works consistently— in every room and on any device. Beyond that, however, CSPs can offer WiFi that adapts to customer usage patterns and predicts where and when they’ll need coverage, so they’re never left buffering in a meeting or a class.
Essentially, CSPs need to build a new bundle—one that goes beyond just delivering internet, phone, and cable packages. With these new digital services, CSPs will be better positioned to compete with big tech and differentiate their offerings—and, of course, increase revenue. Also, remember that CSPs are uniquely positioned to deliver a new services bundle because they’re already in the home. Sure, Amazon is in the home, too, but only as a virtual assistant or a streaming platform. The CSP is still the customer’s gateway to a broadband connection and, thus, a more accessible portal to these new services.
Use a cloud-based system
While offering new smart services might sound overwhelming, CSPs don’t have to launch them all at once. Instead, they can make incremental changes by moving to a cloud-based system.
With this setup, CSPs can easily update customers’ firmware at scale, quickly launch new services, and gather real-time data about each user’s preferences and behaviors. From there, they can make better-informed decisions about what customers need and how to provide it.
Think about it. If you’re eager to launch a cyber-security service, for example, you don’t have to create an entirely new line of business or even deliver new hardware to your interested customers. You can use your cloud-based platform to gradually launch updates across your networks—making small changes to the systems you’ve already worked hard to put in place. So, where do you start? That’s where Plume comes in. Just like big tech companies, we grew up in the cloud. And we have the resources CSPs need to deliver more value to their customers at speed and scale. With the tools we have now—and the ones yet to come—we’re confident that CSPs will be well prepared to succeed in the battle with big tech. They just have to start now. You know, before any new satellites are launched.